Travel agents must revise misleading ads or face court
Drastic drop in illegal forms of advertising
Three travel agents have been given an ultimatum by the Consumer and Competition Division (CCD) to revise misleading adverts or face the courts.
The action forms part of a probe which was launched by the division into adverts for flights and package holidays which displayed cheaper prices than clients would actually have had to end up paying.
The exercise led to a drastic clean-up. From a non-compliance rate of 81 per cent at the beginning of the year, the division says it has managed to slash the number of misleading adverts to five per cent by the end of last month.
Nonetheless, three agents are still refusing to comply and the division has served them with a compliance order, before legal action is taken against them.
When contacted the Finance Ministry refused to supply the names of the three agents, who are still adopting illegal forms of advertising. A spokesman said naming and shaming "is not the best way forward", especially since the companies have been given time to regularise their position before legal action is taken.
CCD Director of Enforcement, Mario Vella said the probe was meant to enforce the Consumer Affairs Act, which states clearly that the price displayed has to represent the final price payable by a prospective consumer.
In February, 126 adverts were found to have tax values included separately (in small print); 444 carried only the pre-tax price, adding that taxes would have to be paid but without saying how much; and 105 adverts displayed just a price without any indication that consumers would also have to pay taxes. All these forms are in breach of the law.
The exercise was immediately successful as the rate of illegal adverts dropped from 81 per cent in February to 73 per cent in March.
Bit it climbed to 81 per cent the following month and the division issued a reminder to travel agents asking them to regularise their position, and the figure started slipping again to reach six per cent in August and five per cent last month.